Confused on Setup

It's been a year or so since I last setup a cpanel and I've got myself confused.

I have been provided name servers by the data center that i can use and by default it had a host name in it however the hostname they had put in does not resolve to the server so I have had to change it.

Now on my domain I have set the name servers (at my registrar) to be the ones that the data center provided - I'm asuming that's right.

Then in cpanel I need to set the hostname to be server1.mydomain.com right?